Boeing on Wednesday posted a $641 million loss in the first quarter and is planning to cut its workforce and aircraft production in a world aviation market “frozen” by the coronavirus pandemic.
The coronavirus crisis is a fresh problem for the aircraft-maker, already struggling from the 13-month-long grounding of its best-selling plane, the 737 Max.
Here’s how the company did in the first quarter:
- EPS: A loss of $1.70
- Revenue: $16.91 billion
Boeing said it plans to cut payroll by about 10% through voluntary measures and “involuntary layoffs as necessary.” Boeing had about 160,000 employees at the end of last year.
“We’ll have to make even deeper reductions in areas that are most exposed to the condition of our commercial customers — more than 15% across our commercial airplanes and services businesses, as well as our corporate functions,” CEO Dave Calhoun said in a staff memo. Calhoun later told reporters “higher percentages [of cuts] will be from the white collar world.”